Brandon returns to Beverly Hills from his summer job in Boston and at Steve's advice, he helps set up a destructive rave party in his parents vacant house. Valerie welcomes Ginger LaMonica, a visiting friend of hers from Buffalo who's as wild and devious as she, and has an eye for Brandon. Meanwhile, Kelly returns to Beverly Hills with a new boyfriend named Colin Robins, a young artist whom she met while modeling in New York City. Donna hosts a party on her parents yacht, while trying to hide her doubts about her future relationship with Ray. Also, Dylan becomes more and more obsessed with avenging his father's death when he visits his family's storage locker and talks with his father's former prison cell mate.

The gang helps Brandon repair the Walsh house after it falls out of escrow, and Steve decides to move in with him and Valerie. Kelly prepares to celebrate her 21st birthday party at the Greek Concert Hall with the gang. Ray becomes the prime suspect in the theft of money and several jewelry items from Donna's parents and others. But Valerie exposes Ginger as the culprit which at the end is revealed to be a scam for the gang to get to like Valerie again. Meanwhile, Dylan goes off in search of the mobster, Anthony Marchette, who was the mastermind of his father's death and decides to commit himself to a personal revenge against him.

Donna and Clare find Kelly's stash of cocaine in their beach front apartment, prompting her to move out to Colin's for an increased drug binge. Despite Brandon's intervention, Kelly refuses help and brushes everyone off. Joe's heart condition again comes out when he collapses after a biplane flight with Jonathan, Brandon and Steve. But Joe does not want anyone else to know because it might jeopardize his football career. Meanwhile, Valerie's old friend, Ginger LaMonica, inconspicuously returns to Beverly Hills and breaks her deal by blackmailing Valerie by revealing about the jewelry theft scam for money. Valerie refuses to pay, until Ginger offers another option: a sordid night with David.

On Valentine's Day, Clare makes a bet with Steve that he won't fulfill his pledge of celebrating celibacy at a Valentine's Day party that Donna's sorority throws. Meanwhile, Valerie sets Jonathan up with Ginger to keep her away from David, but her plan fails and when David learns the truth about Ginger and that Valerie will do anything to keep her secret, he leaves Valerie for good. Kelly travels to the rough area of L.A. to buy more cocaine for herself, gets kidnapped, and hits rock bottom. Also, Joe gets bad news when his coach tells him that he is off the football team after news of his heart disorder begins circulating.